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Foreign Languages and Trade

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  • Jan Fidrmuc

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  • Jarko Fidrmuc

    ()

Abstract

Cultural factors and especially common languages are well-known determinants of trade. By contrast, the knowledge of foreign languages was not explored in the literature so far. We combine traditional gravity models with data on fluency in the main languages used in EU and candidate countries. We show that widespread knowledge of languages is an important determinant of foreign trade, with English playing an especially important role. Other langauges (French, German, and Russian) play an important role mainly in particular regions. Furthermore, we argue that the effect of foreign langauges on trade may be non-linear. The robustness of our results is confirmed by quantile regressions.

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Bibliographic Info

Paper provided by Centre for Economic Development and Institutions(CEDI), Brunel University in its series CEDI Discussion Paper Series with number 09-03.

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Length: 28 pages
Date of creation: Mar 2009
Date of revision:
Handle: RePEc:edb:cedidp:09-03

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Citations

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Cited by:
  1. Jarko Fidrmuc & Matus Senaj, 2012. "Human Capital, Consumption, and Housing Wealth in Transition," Working and Discussion Papers WP 2/2012, Research Department, National Bank of Slovakia.
  2. Daria Ciriaci & Alessandro Muscio, 2011. "University choice, research quality and graduates' employability: Evidence from Italian national survey data," Working Papers 48, AlmaLaurea Inter-University Consortium.
  3. Ingo Isphording, 2013. "Returns to Local and Foreign Language Skills – Causal Evidence from Spain," Ruhr Economic Papers 0398, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
  4. Peter Egger & Andrea Lassmann, 2014. "Cultural Integration and Export Variety Overlap Across Countries," CESifo Working Paper Series 4800, CESifo Group Munich.
  5. Nicolas Sauter, 2012. "Talking trade: language barriers in intra-Canadian commerce," Empirical Economics, Springer, vol. 42(1), pages 301-323, February.
  6. Brindusa Anghel & Antonio Cabrales & Jesús M. Carro, 2012. "Evaluating a bilingual education program in Spain: the impact beyond foreign language learning," Economics Working Papers we1214, Universidad Carlos III, Departamento de Economía.
  7. Herrmann-Pillath, Carsten & Libman, Alexander & Yu, Xiaofan, 2014. "Economic integration in China: Politics and culture," Journal of Comparative Economics, Elsevier, vol. 42(2), pages 470-492.

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